Tuesday

Southeast Michigan economy accelerates, purchasing index reveals

The economy in Metro Detroit accelerated in May, according to the Southeast Michigan Purchasing Managers Index, which shot up from April's reading of 55.3 to 61.2

A figure above 50 reflects economic growth. The index has been above 50 for 37 of the last 39 months.

"Sequestration does not seem to have impacted the Southeast Michigan economy to any measurable extent," said Nitin Paranjpe, a supply chain faculty member at Wayne State University's School of Business Administration.

"Production, new orders, and employment all increased sharply to climb into the 60's," he said, referring to several components of the index. "This should lead to a steady decline in the unemployment rate over the summer months. In fact, automobile manufacturers are curtailing their traditional summer slowdown and shutdowns and are instead ramping up production activity."

Eighty-four percent of purchasing managers responding to the monthly survey said they expect the economy will remain about the same over the next six months, with 8 percent saying it will get better.

The index is a research partnership between WSU and the Institute forSupply Management-Southeast Michigan.